Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
New Brunswick report outlines causes of 40M bailout
NEW BRUNSWICK, Canada (1/21/10)--The near collapse of Caisse Populaire de Shippagan--a Canadian credit union--was due to a string of failures, ranging from shoddy accounting to mismanagement and the government’s failure to ensure adequate supervision of a credit union, according to an investigation by New Brunswick’s auditor general. In 2007, a series of events culminated in requiring a $40 million bailout by the Liberal government in power at the time (www.680news.com Jan. 19). Mike Ferguson issued a 54-page report Tuesday that identified failures in the credit union’s chain of command--and the New Brunswick province’s regulatory regime that allowed the credit union to fudge its financial data, and inflate the salaries of some senior management. However, the report also indicates some of the blame should accrue to New Brunswick’s former Conservative government for failing to ensure adequate regulation and supervision of the credit union. Among the short-comings the report found: there was only a part-time superintendent of credit unions who had been directed to focus on other priorities; and the New Brunswick Credit Union Stabilization Board--the regulatory board at the time--had inadequate powers to act, once it became aware of the of the credit union’s problems. If the government had taken action more quickly, “the total loss to New Brunswick taxpayers would probably have been about half what it eventually was,” Ferguson wrote.


RSS





print
News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
20 hours ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief. http://t.co/TMTubG9Afk
22 hours ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today: http://t.co/ep5…
1 day ago
Seriously underwater homes rise, new-home sales tumble News Now: http://t.co/2LzWTkqnES
1 day ago
#NewsNow Cornerstone Foundation awards $71K in grants http://t.co/Y6D8K9rwWv
1 day ago